Cancellation of GST Registration Revoked Upon Payment of Dues and Late Fees
Summary in Key Points:
- Issue: Whether the cancellation of a GST registration can be revoked when the assessee has failed to file returns within the prescribed time but is willing to pay all outstanding dues and penalties.
- Facts: The assessee’s GST registration was cancelled due to non-filing of returns. The assessee expressed willingness to pay all outstanding tax, interest, and late fees and sought the revocation of the cancellation order.
- Decision: The High Court, relying on the precedent set in Mohanty Enterprises v. Commissioner, CT & GST, Odisha, allowed the assessee to file an application for revocation of the cancellation order upon payment of all outstanding dues and penalties.
Decision:
The High Court ruled in favor of the assessee, allowing them to revoke the cancellation of their GST registration upon fulfilling certain conditions. The court emphasized the following:
- Condonation of Delay: The court followed the precedent set in Mohanty Enterprises, which allowed for the condonation of delays in filing returns under certain circumstances, particularly when the assessee is willing to cooperate and pay all outstanding dues.
- Payment of Dues: The assessee was required to pay all outstanding tax, interest, and late fees to demonstrate their willingness to comply with GST regulations.
- Application for Revocation: The assessee was permitted to file an application for revocation of the cancellation order.
- Consideration by Authorities: Upon receiving the application and payment of dues, the competent authorities were directed to consider the assessee’s request and take an appropriate decision.
Important Note: This case demonstrates the High Court’s willingness to provide relief to taxpayers who are willing to rectify their mistakes and comply with GST regulations, even after their registration has been cancelled. The court’s reliance on the precedent in Mohanty Enterprises highlights the importance of consistency in applying the law and providing fair opportunities for taxpayers to regularize their status. This decision encourages tax compliance and promotes a more inclusive GST regime.
HIGH COURT OF ORISSA
Sonu Pattanayak
v.
Additional State Tax Officer
Arindam Sinha and M.S. Sahoo, JJ.
W.P.(C) No.229 of 2025
JANUARY 7, 2025
Mrs. Kajal Sahoo, Adv. for the Petitioner. S. Mishra, Adv. Standing Counsel for the Respondent.
ORDER
1. Mrs. Sahoo, learned advocate appears on behalf of petitioner and submits, under challenge is show cause notice dated 14th November, 2023 followed by order dated 16th December, 2023 cancelling her client’s registration under Odisha Goods and Services Tax Act, 2017. She submits, her client is ready and willing to pay the tax, interest, late fee, penalty and any other sum required to be paid for the return form of her client to be accepted by the department. She relies on order dated 16th November, 2022 of coordinate Bench in W.P.(C) no.30374 of 2022 (M/s. Mohanty Enterprises v. The Commissioner, CT & GST, Odisha, Cuttack and others). She submits, her client’s claim to relief including prayer for condonation of delay is covered by said order.
2. Mr. Mishra, learned advocate, Standing Counsel appears on behalf of the department.
3. We reproduce below paragraph-2 from said order in M/s. Mohanty Enterprises (supra).
“2. In that view of the matter, the delay in Petitioner’s invoking the proviso to Rule 23 of the Odisha Goods and Services Tax Rules (OGST Rules) is condoned and it is directed that subject to the Petitioner depositing all the taxes, interest, late fee, penalty etc., due and complying with other formalities, the Petitioner’s application for revocation will be considered in accordance with law.”
Likewise direction is made in this writ petition. Petitioner gets the relief in the interest of revenue.
4. The writ petition is disposed of.